Nvidia's market value exceeds $2.5 trillion, and it will double down on AI in the future

Author: Martin Young, CoinTelegraph; Compiler: Deng Tong, Golden Finance

Semiconductor giant Nvidia has no plans to slow down its artificial intelligence ambitions after its first-quarter revenue hit a record $26 billion.

On May 22, Nvidia released its first-quarter earnings report. Revenue increased 18% from the fourth quarter of last year and 262% from the same period last year, exceeding analysts' expectations of $24.6 billion.

The earnings report caused NVDA's stock price to soar to a record high of just over $1,000 in after-hours trading on May 22, giving it a market value of more than $2.5 trillion.

Nvidia's stock market value is larger than the combined market value of Tesla and Amazon, twice that of Bitcoin, and more than five times that of Ethereum.

Five years ago, Nvidia's market value was only $100 billion, but now it has become the world's third-largest public company, just 17% away from surpassing Apple.

Source: MarketWatch

The company reported strong growth in data center revenue to $22.6 billion, driven by growing demand for generative AI training.

Nvidia founder and CEO Jensen Huang said the next industrial revolution has begun to shift to a new type of data center - "AI factories that produce new goods."

“We’re ready for the next wave of growth,” he said before announcing that the new Blackwell platform, designed for “tera-parameter generative AI” supercomputing, was in full production.

Huang said the company would now start producing AI chips on an annual basis, and he confirmed the new production cycle during the company’s earnings call:

“I can announce that after Blackwell, there is another chip. We’re on a one-year basis.”

Up until now, Nvidia has produced a new microchip architecture roughly every two years, with Ampere due in 2020, Hopper in 2022, and Blackwell in 2024.

Nvidia revenue report. Source: Nvidia

The company also revealed that it will expand its collaboration with Amazon Web Services (AWS), Google Cloud, Microsoft and Oracle to advance generative artificial intelligence innovation.

New AI performance optimizations and integrations for Microsoft Windows are now available, showing the best performance on Nvidia GeForce graphics cards and PCs.

The company also announced new AI gaming technologies — Nvidia ACE and Neural Graphics — and hinted at exploring AI for more immersive gaming experiences. However, gaming revenues were $2.6 billion in the first quarter, down 8% from the previous quarter.

Nvidia plans to continue to drive AI development in industries such as automotive (autonomous driving), robotics, healthcare, and semiconductor manufacturing.